BAT allegations go up in smoke

BRITISH American Tobacco was today sensationally cleared of allegations, made by The Guardian, that it was involved in smuggling cigarettes in Latin America.

The newspaper and the anti-smoking pressure group, Ash, claimed that BAT colluded in smuggling, thereby evading taxes and enabling it to sell cigarettes cheaply in poor countries.

Their allegations prompted MPs to call for a full investigation by the Department of Trade and Industry with a view to launching criminal proceedings if they were found to be correct. But today, four years after the investigation was launched, Trade Secretary Patricia Hewitt said no material evidence had been uncovered to support charges.

The DTI is taking no further action.

Despite its victory, the maker of Lucky Strike cigarettes said its lawyers had advised it not to take legal action against the newspaper and that it would not even be asking for an apology.

'The Guardian piece was written in such a way that we could not pursue an action,' said a BAT spokeswoman.